₦airaland Forum

Pacesetter123:
This government is heartless.
Somebody built his refinery, refined his petrol and wants to sell it at cheaper rate to ameliorate the suffering inflicted upon the masses by the government,but the same government that refused to build her own refinery is now forcing the price of petrol on somebody who has a willing heart to help.

Why is it the government that fixes the price for Dangote?
Why is the government bent on being the sole distributor of Dangote s fuel?

Pacesetter123:
This government is heartless.
Somebody built his refinery, refined his petrol and wants to sell it at cheaper rate to ameliorate the suffering inflicted upon the masses by the government,but the same government that refused to build her own refinery is now forcing the price of petrol on somebody who has a willing heart to help.

Why is it the government that fixes the price for Dangote?
Why is the government bent on being the sole distributor of Dangote s fuel?

ufotunang:
it's greediness and selfishness from NNPC and federal government..this is what is killing this country.. greediness and selfishness

MEEVEET:
I don't know why this government lie so much... This is becoming a sickness

There is no way under the sun dangote can sale petrol at ₦898... It's absolutely impossible

Crude oil cost 72 dollars per barrels it cost 5 dollars to refine averagly that's 77 dollars

There are 159 litres in a barrels

5% of crude is lost during refining average that's so we have 151 litres

refinery expect 40-45% gasoline, 25-30% diesel, 5-10% aviation fuel, and about 15-25% "other"

So let's use 45 petrol, 30 diesel and 10% aviation fuel ( kerosene +diesel blend)

The remaining 15% is basically worthless

For simplicity sake let's assume petrol diesel and kerosene are same price

85% of 151 = 129 litres of products
Crude cost + refining cost = 77*1650 = 127,050

That gives us a cost price of ₦985

Let's say dangote sets a profit margins of 15%

That gives us a final price of
₦ 1,132

I have been very very conservative here... Cost of refining, and yield but this is the minimum dangote can sale his petrol

favor914:
Ok the people wey dey Federal Government & NNPC be Ghanaians, dey wan wicked us Nigerians abi?

lithiumnigeria:
When we tried to explain this thing 5 years ago, we were called enemies of progress.
Refining PMS worldwide is a very very low margin business. Refineries normally take like 4-5 Months Forward PMS Off-take Contract so that they can also do forward purchase of crude. It’s a liquidity business.
Somehow, Nigerians were erroneously convinced that it will be cheaper.

As it is, it is obvious that NNPCL is even doing Dangote a favour by being the sole offtaker.
Dangote needs liquidity. Only NNPCL can give him.

ufotunang:
...does the federal government and NNPC care about Nigerians..they are just there to loot and embezzle money and enrich themselves..they do not care what the poor nigerians are passing through

Deepocean:
My point is not to say who's at fault or not.

My question to you is that in that one litre of crude, is it only PMS they will refine from it?

Kindly answer.

RemiClitHoris:
Is that a plea?

I'm not a gentleman. I serve violence to all BATeria that refuse to repent. All of you that support this evil government of Tinubu because of tribal and religious sentiments will surely be visited with hunger and deprivation in thousands fold.

MEEVEET:
I don't know why this government lie so much... This is becoming a sickness

There is no way under the sun dangote can sale petrol at ₦898... It's absolutely impossible

Crude oil cost 72 dollars per barrels it cost 5 dollars to refine averagly that's 77 dollars

There are 159 litres in a barrels

5% of crude is lost during refining average that's so we have 151 litres

refinery expect 40-45% gasoline, 25-30% diesel, 5-10% aviation fuel, and about 15-25% "other"

So let's use 45 petrol, 30 diesel and 10% aviation fuel ( kerosene +diesel blend)

The remaining 15% is basically worthless

For simplicity sake let's assume petrol diesel and kerosene are same price

85% of 151 = 129 litres of products
Crude cost + refining cost = 77*1650 = 127,050

That gives us a cost price of ₦985

Let's say dangote sets a profit margins of 15%

That gives us a final price of
₦ 1,132

I have been very very conservative here... Cost of refining, and yield but this is the minimum dangote can sale his petrol

Krucifax:
Source https://dailytrust.com/breaking-we-bought-fuel-from-dangote-at-n898-per-litre-nnpcl/

Based on the feedback from NNPC my price pyramind prediction is thus =

Dangote Sale Price = N898
NPPC Sale Price = N898 + X?
Marketers Sale Price = N898 + X? + X?
Petrol Station Sale Price = N898 + X? + X? + X? = Find X ??

Afonja44:
Tinubu's gf said N898 is better than N140

iLoveYouToo:
More like fine x1, x2 and x3

richmond500:
90% is pms

LibertyRep:
Wicked set of homo sapeins.

Very very heartless, cunning and deceitful.

Krucifax:
Source https://dailytrust.com/breaking-we-bought-fuel-from-dangote-at-n898-per-litre-nnpcl/

Based on the feedback from NNPC my price pyramind prediction is thus =

Dangote Sale Price = N898
NPPC Sale Price = N898 + X?
Marketers Sale Price = N898 + X? + X?
Petrol Station Sale Price = N898 + X? + X? + X? = Find X ??

Deepocean:
You are wrong oga

Here is the percentage which could vary slightly depending on some factors.

Petrol (gasoline): 20-25%
- Diesel fuel: 20-30%
- Jet fuel: 10-15%
- Fuel oil: 10-20%
- LPG (liquefied petroleum gas): 5-10%
- Other products (lubricants, petroleum coke, etc.): 5-10%

lithiumnigeria:
When we tried to explain this thing 5 years ago, we were called enemies of progress.
Refining PMS worldwide is a very very low margin business. Refineries normally take like 4-5 Months Forward PMS Off-take Contract so that they can also do forward purchase of crude. It’s a liquidity business.
Somehow, Nigerians were erroneously convinced that it will be cheaper.

As it is, it is obvious that NNPCL is even doing Dangote a favour by being the sole offtaker.
Dangote needs liquidity. Only NNPCL can give him.

Deepocean:
My point is not to say who's at fault or not.

My question to you is that in that one litre of crude, is it only PMS they will refine from it?

Kindly answer.

Zetty177x:
What is fine doin in ur comment? I'm confused

MEEVEET:
I don't know why this government lie so much... This is becoming a sickness

There is no way under the sun dangote can sale petrol at ₦898... It's absolutely impossible

Crude oil cost 72 dollars per barrels it cost 5 dollars to refine averagly that's 77 dollars

There are 159 litres in a barrels

5% of crude is lost during refining average that's so we have 151 litres

refinery expect 40-45% gasoline, 25-30% diesel, 5-10% aviation fuel, and about 15-25% "other"

So let's use 45 petrol, 30 diesel and 10% aviation fuel ( kerosene +diesel blend)

The remaining 15% is basically worthless

For simplicity sake let's assume petrol diesel and kerosene are same price

85% of 151 = 129 litres of products
Crude cost + refining cost = 77*1650 = 127,050

That gives us a cost price of ₦985

Let's say dangote sets a profit margins of 15%

That gives us a final price of
₦ 1,132

I have been very very conservative here... Cost of refining, and yield but this is the minimum dangote can sale his petrol

chidiokay:
OGa i disagree, taking these to further maths is unnecessary cos by basic calculation

1barrel/$72
1barrel = 159litres

1 barrel in # = 72 × 1600= 115200
for a litre = 115200÷159 = 724.5

Nnpc sells crude to dangote at int'L price of 724.5 it could even be less via subsidy or incentives

if the average cost of refining 1 barrel = $ 5
5 × 1600 = 9000
for a litre = 9000 ÷ 159 = # 56
Technically, Dangote refined product per litre should be around 725 + 56 = # 781


In manufacturing account waste has no entry and as such can not be segregated from prime cost, i stand to be corrected

Alliswell248:
The man ipob miscreants hate , who God is lifting.

Gbajue people

MEEVEET:
🤦‍♂

Yeah efficiency of 100%
All crude converted to valuable petrol diesel and aviation fuel

Let me ask you this If dangote can produce petrol at 50 cents while would he sale to Nigeria? When he can sale for 1 dollars across the world?

chidiokay:
No one is asking dangote to do charity here, and the the local market does not negate "profitability"

With Dangote capacity, he can afford to meet Nigeria's demand and still export to anywhere

From all indications of pricing, Nnpc/ Dangote are using int'l market price to compute "price" .. so there is no sane rationale why dangote will pick export over local sales at this time, na same turnover